TY - UNPB

T1 - Exports, R&D and Productivity in German Business Services Firms: A test of the Bustos-model

AU - Vogel, Alexander

AU - Wagner, Joachim

PY - 2012

Y1 - 2012

N2 - This paper uses newly available data for German business services firms to test a hypothesis derived by Bustos (AER 2011) in a model that explains the decision of heterogeneous firms to export and to engage in R&D. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of firms with exports and R&D dominates that of exporters without R&D, which in turn dominates that of firms that neither export nor engage in R&D. These results are in line with findings for firms from manufacturing industries. The model, therefore, seems to be useful to guide empirical work on the relation between exports, R&D and productivity for services firms, too.

AB - This paper uses newly available data for German business services firms to test a hypothesis derived by Bustos (AER 2011) in a model that explains the decision of heterogeneous firms to export and to engage in R&D. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of firms with exports and R&D dominates that of exporters without R&D, which in turn dominates that of firms that neither export nor engage in R&D. These results are in line with findings for firms from manufacturing industries. The model, therefore, seems to be useful to guide empirical work on the relation between exports, R&D and productivity for services firms, too.

KW - Economics

KW - Exports

KW - R&D

KW - productivity

KW - business services firms

KW - Germany

M3 - Working papers

T3 - University of Lüneburg Working Paper Series in Economics

BT - Exports, R&D and Productivity in German Business Services Firms: A test of the Bustos-model

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -